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BTS2/FAQs Oct 2013 Page 1 of 6

BURSA TRADE SECURITIES 2 (BTS2)


FREQUENTLY ASKED QUESTIONS NON-TECHNICAL

No. Question Responses
1 As announced in BTS2 Technical
Briefing #4(18th April 2013),
Bursa will no longer provide the
defaulter list from 1 June 2013
onward.
Will Bursa no longer provide the
BUYING-IN DEFAULTER LIST
as well?
Bursa will not provide BUYING-IN DEFAULTER LIST after
BTS2 launch.
2 Will Bursa dispatch the dynamic
limit? Or everything holds within
the exchange components?
Dynamic limit is held within the Exchange components.
3 Can Bursa provide the list of
additional functional features and
practices of BTS2 as compared
to the current BTS from Business
perspective?
The new trading features would include stop market order,
stop limit order & dynamic limit.

4 Will GTD validity be supported by
BTS2? If yes, what is the longest
validity supported for GTD
orders?
Good to Cancel (GTC) and Good to Day (GTD) will not
be supported upon BTS2 go live.
5 Will the exchange provide
Iceberg orders?
No, Iceberg orders will not be supported upon BTS 2 go
live.
6 Are there any rules on how far
DR must be from Primary?
It is stated in our Disaster Recovery Code that as a best
practice, the disaster recovery site is located at least 10km
from the main business premise and that when the main
business premise cannot be accessible for any reason, the
disaster site is still accessible.
7 Can the ticksize rules applicable
on an instrument change
intraday through a BK message?

No, it cant


8 Does the VWAP provided by the
Exchange include both on book
and off book(DBT) trades?
VWAP is computed based on the total value of securities
transacted during a particular period of time (the
period) divided by the total number of securities
transacted during the period
Only transaction done on normal market is included i.e.
computation excludes buy in, DBT and odd lot.

BTS2/FAQs Oct 2013 Page 2 of 6

No. Question Responses
9 Could we know which daily
SCANS file is no longer provided
after implement of BT2?
Midday files for each PO:
SCOTRS1 (OMT Transaction)
SCOMDB1 (DBT and Buying-in Transaction)
SCOCNAM (client amendment)

End of day files for each PO:
SCOTRS2 (OMT Transaction)
SCOMDB (DBT and Buying-in Transaction)
SCOCNALL (client amendment for the entire day)

These files will be retired by 30 June 2014.
10 Can Bursa advise details on
Market Maker Monitoring? How
does it relate to Market Maker
Quote?
With the implementation of quote in market making system,
market making monitoring is made more efficient for
ascertaining obligation fulfilment. Quotes and orders are
distinct. By having quote system, obligation can be
identified clearly and easily from orders and this will enable
accuracy in monitoring obligations.
11 How is the exchange throttle
being handled in BTS2
compared to the current system?
Currently Bursa Access pricing model is based on 15
orders/sec per subscription block and it is valid for two
years with effect from 1 January 2013. We hope to be able
to provide greater flexibility to the industry by increasing the
capacity over time but this is subject to further review.
12 Do Simulated Last Price (IOPV
Last Price)/ Offer Price/ Bid Price
applies to all asset types Or only
ETFs?
This only applies to ETFs.
13 Will Order tagging be provided in
SCORE files?
No, it does not.









BTS2/FAQs Oct 2013 Page 3 of 6

No. Question Responses
14 Do you have different market
hours on different boards? Or
they are all the same? Could
you please provide details?

Trading
Phases
Market Timing
Normal
Lot
Market
Odd Lot
Market
Buying-
in Market
DBT
Market
Pre-Opening 8:30am 8:30am - -
(1
st
session)
*Opening
/Continuous
Trading (1
st

session)
9:00am 9:00am **8:30 am 8:30am
End of
Session
12.30pm 12.30pm 12.30pm -
Pre-Opening 2:00pm 2:00pm - -
(2
nd
session)
*Opening
/Continuous
Trading (2
nd

session)
2:30pm 2:30pm 2:00pm -
Pre-Closing 4.45pm 4:45pm - -
(2
nd
session)
* Trading At
Last
4:50pm 4:50pm - -
End of
Trading Day
5:00pm 5:00pm 5:00pm 5:15pm
* Switch over to next phase is instantaneous upon
completion of this phase

** The latest time buying-in trades will be broadcasted. This
information is available in Bursa Malaysia Securities Bhds
Bursa Trade Securities Participating Organisations Trading
Manual

The latest copy can be obtained at this link

http://www.bursamalaysia.com/misc/system/assets/469/sec
urities_equities_trading_manual.pdf



BTS2/FAQs Oct 2013 Page 4 of 6

No. Question Responses
15 Can you provide the tick size for
KLS?

Table I Tick Sizes for Securities Traded and Quoted
on Bursa Malaysia
Tick Sizes for Securities Traded and Quoted
Price Range Tick Size (Sen)
Below RM1.00 0.5
RM1.00 up to RM9.99 1
RM10.00 up to RM99.98 2
RM100.00 above 10
Table II Tick Sizes for ETF
Tick Sizes for ETF
Securities Market Price Tick Size (Sen)
ABFMY1 At any price 0.1
Equity-based
ETFs
Less than
RM1.00
0.1
Between RM1.00
to RM2.995
0.5
RM3.00 and
above
1
ETBS At any price 1
Buying-In Price
The buying-in price will be based on the current tick
structure (Table III) and tick sizes rather than the "tick size"
structure.
Table III Buying-in Tick Size Structure
Current Tick Size Structure
Below RM1.00 0.5
RM1.00 to RM2.99 1
RM3.00 to RM4.98 2
RM5.00 to RM9.95 5
RM10.00 to RM24.90 10
RM25.00 to RM99.75 25
RM100.00 above 50

BTS2/FAQs Oct 2013 Page 5 of 6

No. Question Responses
Note: For bonds, debentures, loan securities, warrants and
call warrants, the minimum bid structure has the same
minimum trading spreads as for shares.
This information is available in Bursa Malaysia Securities
Bhds Bursa Trade Securities Participating Organisations
Trading Manual.
The latest copy can be obtained at this link
http://www.bursamalaysia.com/misc/system/assets/469/sec
urities_equities_trading_manual.pdf

A. Dynamic Limit
16 What is dynamic limit?




Dynamic limit will be implemented in a form of a price band
that varies with movement in the traded price of an
instrument throughout the day. Orders with price either buy
or sell outside of this price band at the time of order entry
will be not be matched and purged from the order book or
purged from the trading engine.

17 Who sets the limit?


The threshold percentage is determined by Bursa and
applied to all stocks except for IPOs.
18 What is the limit?

The limit will be set on percentage basis for stocks with
price RM1 and above, and on sen basis for stocks with
price below RM1.00, rounding to the closest bid. For
example, Bursa could set 8% for stocks with price RM1 and
above, and 8 sens for stocks with price below RM1.
Range Threshold Price Dynamic
Limit Range
Below
RM1.00
+/-
RM0.08
RM0.80 RM0.72 to
RM0.88
RM1 and
above
+/- 8% RM2.50 RM2.30 to
RM2.70

19 4. How often does the limit
change? How will I know if the
limit is changed?


Bursa will actively monitor the effectiveness of the
threshold percentage, and inform the marketplace if there
is a need to change the percentage threshold to be
effective when the market condition changes.

20 Why buyers can queue above the
8% dynamic limit when the
markets highest traded price
was at RM11.00 at that point of
time?

Since the static limit is 30%, the highest the buyer can
place an order is RM 13.56 (no seller queue to sell)
21 The dynamic limit should work in
an aggressive way that allows
You may queue to sell at limit up or buy at lower limit price
as long as it is within the static limit (30%/ 30sen) if there is

BTS2/FAQs Oct 2013 Page 6 of 6

No. Question Responses
the seller to sell higher from the
current LTP or buyer to buy
lower than LTP beyond the 8%.

no possible matching.

22 To avoid fat finger or wrong key
in of orders, there should be a
control whereby the buyer cannot
buy above 8% and the seller
cannot sell lower than 8%


Dynamic limit prevents matching of price +/-8%, this
mechanism will prevent buyer to make error to buy above
8% and seller to seller below 8%. The dynamic limit will be
triggered if there are resting orders in the book that are out
of range, any incoming order i.e. the aggressor
order attempting to match with those orders will be purged.
Resting orders will always be preserved.

23 Is the dynamic order applicable
to market order and odd lot?

Dynamic limit will be applicable to market order but not odd
lot.

24 Pre-Closing Quotes and Market
Depth

In BTS2, are the besk ask and
best bid be at Theoretical
Opening Price (TOP)? Can the
buy price be higher than the sell
price?
In BTS2, the best ask and best bid may not be at TOP,
likewise, it is possible that the buy price is higher than the
sell price as the matching algo during pre-open and pre-
close is different from the matching algo of continuous
trading.
For further details on matching algo on pre open and pre
close, please refer to the Participating Organisation (PO)s
Trading Manual Chapter 3 Market Opening Section 3.3
Theoretical Opening Price (TOP) Calculation.
25 Direct Business Transactions
(DBT)

For DBT in BTS2, only one party
is required to initiate /key in /
submit the DBT. Which party
should initiate / key in / submit
the order?


In BTS2, we are going to implement the requirement of
selling party to initiate / key in / submit the order by
providing the following details :
Securities
1. Negotiated / agreed price
2. Selling Systems member code e.g. 035 201, 012 202
3. Selling Dealer code
4. Selling client code (which will be translated to CDS
account by PO's OMS, before submitting to BTS2)
5. Buying Broker System member code e.g. 037 201,
068 203
6. Buying Dealer code

The buying party only receives the following information:
1. Negotiated / agreed price
2. Selling Systems member code e.g. 035 201, 012 202
3. Selling Dealer code
4. Buying Broker System member code e.g. 037 201,
068 203
5. Buying Dealer code
The buying party will then be required to accept / reject the
orders. If the buying party was to accept, he has to provide
the buying client code (which will be translated to CDS
account by PO's OMS, before submitted to BTS2)